Hull, Doncaster and Northampton, which suffered big job losses during the recession, saw the biggest reductions in unemployment claimant count between March 2010 and November 2010. These places all saw drops of 1.2 percentage points in the rate of people claiming Job Seekers Allowance, more than twice the UK average (0.5 percentage points).
In Cities Outlook 2011, the Centre for Cities identifies the cities best placed for a private sector-led recovery.
Five cities to watch: Milton Keynes, Reading, Aberdeen, Leeds and Bristol. These places will be better-insulated from the economic impact of the spending squeeze, and have high potential to create private sector jobs. They have lower vulnerability to public sector job losses and spending cuts, and given the right powers and freedoms could make an even bigger contribution to the national economic recovery.
|
City |
Claimant count Nov 2010 |
Employment rate July 2009-June 2010 |
Potential job losses in public sector by 2014/15 |
Residents with high level qualifications 2009 |
Business stock per 10,000 population 2009 |
|
Aberdeen |
2.2% (3/64) |
78.5 (2/63) |
1.0% (59/63) |
41.4% (4/64) |
341.2 (8/64) |
|
Bristol |
2.8% (13/64) |
74.2% (11/63) |
1.5% (40/63) |
33.2% (14/64) |
313.3 (15/64) |
|
Leeds |
4.1% (35/64) |
70.4% (25/63) |
1.5% (37/63) |
30.9% (15/64) |
269.5 (33/64) |
|
Milton Keynes |
3.5% (23/64) |
72.5 (14/63) |
0.8% (62/63) |
33.7% (12/64) |
379.0 (4/64) |
|
Reading |
2.2% (3/64) |
76.2% (6/63) |
1.1% (55/63) |
37.9% (9/64) |
371.0 (5/64) |
|
GB average |
3.5% |
70.4% |
N/A |
29.9% |
334.7 |
The performance of our largest cities will remain crucial, with 11 of Britain's major cities (London, Birmingham, Bristol, Edinburgh, Glasgow, Leeds, Liverpool Manchester, Newcastle, Nottingham, Sheffield) providing more than one in three (37%) of Britain's private sector jobs.
The report also identifies five vulnerable cities which may not feel the full benefits of national economic recovery for some time: Sunderland, Liverpool, Birkenhead, Swansea and Newport. These places will be affected more by Government spending cuts, given they have low skill levels and levels of business activity, more people employed in the public sector, and more people claiming unemployment benefits. They will need additional financial support from central government, and a realistic local plan of action.
|
City |
Claimant count Nov 2010 |
Employment rate July 2009-June 2010 |
Potential job losses in public sector by 2014/15 |
Residents with no qualifications 2009 |
Business stock per 10,000 population 2009 |
|
Birkenhead |
4.1% (35/64) |
67.5% (40/63) |
1.3% (52/63) |
12.3% (25/63) |
233.1 (55/64) |
|
Liverpool |
5.9% (61/64) |
62.7% (61/63) |
2.3% (4/63) |
19.5 (62/63) |
213.6 (59/64) |
|
Newport |
4.7% (53/64) |
66.7% (43/63) |
2.9% (1/63) |
14.7 (42/63) |
237.2 (50/64) |
|
Swansea |
3.2% (17/64) |
64.8% (58/63) |
2.9% (2/63) |
16.1% (51/63) |
249.2 (44/64) |
|
Sunderland |
4.9% (54/64) |
64.9% (56/63) |
2.1% (7/63) |
13.2% (33/63) |
178.2 (64/64) |
|
GB average |
3.5% |
70.4% |
N/A |
7.9% |
334.7 |
There will be regional differences in the challenges cities will face as they seek to grow their economies. For example, seven out of ten of those due to face the biggest welfare spending cuts by 2014/15 are in the North West of the country.
Top and bottom 10 cities for cuts to the welfare bill per capita, 2014/15
|
City |
Total cuts |
Cuts as % total welfare bill |
Cuts per resident |
City |
Total cuts |
Cuts as % total welfare bill |
Cuts per resident |
||
|
1 |
Birkenhead |
- £61m |
- 5.8% |
- £197 |
54 |
Ipswich |
-£15m |
- 4.3% |
- £119 |
|
2 |
Rochdale |
- £40m |
- 6.1% |
- £194 |
55 |
Gloucester |
-£14m |
- 4.5% |
- £119 |
|
3 |
Liverpool |
- £148m |
- 5.7% |
- £192 |
56 |
Reading |
-£50m |
- 6.0% |
- £116 |
|
4 |
Blackburn |
- £27m |
- 6.0% |
- £192 |
57 |
Bournemouth |
-£40m |
- 3.9% |
- £114 |
|
5 |
Barnsley |
- £41m |
- 5.9% |
- £181 |
58 |
Aberdeen |
-£24m |
- 5.0% |
- £114 |
|
6 |
Burnley |
- £32m |
- 5.7% |
- £181 |
59 |
Portsmouth |
-£57m |
- 4.4% |
- £112 |
|
7 |
Bolton |
- £47m |
- 5.8% |
- £176 |
60 |
Norwich |
-£28m |
- 4.1% |
- £107 |
|
8 |
Glasgow |
- £182m |
- 5.6% |
- £175 |
61 |
Cambridge |
-£12m |
- 5.8% |
- £103 |
|
9 |
Sunderland |
- £48m |
- 5.5% |
- £172 |
62 |
Oxford |
-£15m |
- 5.1% |
- £99 |
|
10 |
Wigan |
- £52m |
- 5.9% |
- £171 |
63 |
York |
-£17m |
- 3.9% |
- £85 |
Alexandra Jones, Chief Executive of the Centre for Cities, said,
"Buoyant cities like Leeds and Bristol, which have been fast-growing and have lots of private sector jobs, are best placed to lead the UK's recovery. It's time these places had new financial freedoms such as full control over the local business rate, and new powers to raise money. They could also benefit from having London-style mayors.
"During 2011, the UK cities most dependent on the public sector, and which have seen slower economic growth over the last decade, will find it more difficult to rebalance towards the private sector. These cities will need realistic plans of action to ride out the spending cuts and create jobs – but they will also need additional financial support from central Government."
Lynn Ferguson, IBM Director for Local Government, said:
"Cities Outlook 2011 highlights some of the specific challenges confronting cities today. Leaders will need to act decisively and collaboratively within their cities to achieve competitive advantage and drive economic growth.
The 'Smartest Cities' will be those that have an integrated view of the information associated with city systems such as energy, transport, healthcare and water. Those that do will be best placed to deliver improvements in the quality of public services and in the creation of attractive locations for people and business alike."
